RBI pauses onboarding of online merchants by Paytm Payments Services

Paytm on Saturday notified the stock exchanges that the Reserve Bank of India (RBI) has asked its subsidiary — Paytm Payment Services Ltd (PPSL) — not to onboard new online merchants.

This was in response to an application the company had filed for a payment aggregators license.

In a letter, the central bank has asked the company to seek necessary approval for past downward investments from Paytm to the company to comply with FDI guidelines.

After complying with the two steps prescribed by the regulator, PPSL can apply for a payment aggregators license in the next 120 days.